Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader has the following details for rent and rates for one year. Opening accrual: $\$750$ Bank payments made during the year: $\$2\,650$ Closing prepayment: $\$850$ What amount of rent and rates expense should be entered in the income statement for the year?

  • A$\$1\,050$
  • B$\$2\,550$
  • C$\$2\,750$
  • D$\$4\,250$

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